Last Update: May 24, 2023, 23:55 IST
The US Memorial Day holiday on May 29 marks the beginning of the peak summer travel season and high demand for fuel. (Image: Reuters file)
Brent crude futures were up 90 cents, or 1.2%, at $77.74 a barrel by 12:29 p.m. EDT (1629 GMT).
Oil prices rose more than 1% on Wednesday following a large unexpected drop in US crude inventories and a Saudi energy minister’s warning that raised the prospect of further OPEC+ production cuts.
Brent crude futures were up 90 cents, or 1.2%, at $77.74 a barrel by 12:29 p.m. EDT (1629 GMT). US West Texas Intermediate crude (WTI) rose 97 cents, or 1.3%, to $73.88.
US crude inventories posted a massive weekly decline of 12.5 million barrels to 455.2 million barrels, the Energy Information Administration said. Analysts had expected an increase of 800,000 barrels. [EIA/S]
The EIA said US gasoline stocks fell 2.1 million barrels to 216.3 million barrels in the week, while distillate stockpiles fell 600,000 barrels to 105.7 million barrels.
The US Memorial Day holiday on May 29 marks the beginning of the peak summer travel season and high demand for fuel.
“Refiners are maxing out with full refinery runs, trying to keep up with demand,” said Phil Flynn, an analyst at Price Futures Group.
“Oil prices are so focused on debt ceiling and interest rates, but they haven’t really focused on the supply and demand side which has tightened over the past few weeks.”
Saudi Arabia’s energy minister said short-sellers betting on oil prices should “watch” for pain, a move some investors took as a sign that OPEC+, the Organization of the Petroleum Exporting Countries, and allies including Russia, Can consider further cuts in production in a meeting. On June 4th.
“Oil prices are trading higher, buoyed by the latest short-seller warning from Saudi Arabia,” said Craig Erlam, senior market analyst at OANDA.
“(But) if past experience is anything to be known, traders may be tempted to fall for his bluff.”
Tracking broader markets, there were no signs of progress in US debt ceiling talks as the deadline for raising the federal government’s borrowing limit or risking default approached. [MKTS/GLOB]
A source familiar with the matter said negotiators for Democratic President Joe Biden and Republican Speaker Kevin McCarthy were expected to reconvene on Wednesday morning.
Gains in oil prices were limited on news that Britain’s extremely high inflation rate was lower than expected last month, according to official data raising the prospect of more interest rate hikes.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – reuters,
